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IRS Provides Penalty Relief for Underpayment of 2018 Taxes

The IRS has announced that it is waiving the estimated tax penalty for many taxpayers whose 2018 federal income tax withholding and estimated tax payments fell short of their total tax liability for the year. The relief is prompted by changes in the Tax Cuts and Jobs Act (TCJA.). This waiver covers taxpayers whose total withholding and estimated tax payments are equal to or greater than 85% of their taxes owed.

The Residential Cost Segregator™ is an online self-service software program that allows owners of residential rental properties to increase their depreciation deductions and lower their income tax bill. The software is available for residential rental properties up to 6 units with a depreciable tax basis of $500,000 or less (purchase price less land). Find out more at kbkg.com/residential-costsegregator.

Own a Second Home in New York? Prepare for Higher Tax Bill

The state of New York seems to have found a novel way to raise the revenue needed to close its substantial budget gap: tax people who don’t live there.

A New York court ruled last month that all income earned by a New Canaan, Conn., couple is subject to New York state taxes because they own a summer home on Long Island they used only a few times a year. They have been hit with an additional tax bill of $1.06 million.

U.S. Existing Home Sales in February 2019

Existing Home Sales in February 2019 Up Sequentially from January by 11.8 Percent, But Were Down 1.8 Percent from a Year Ago on A Seasonally Adjusted Annualized Basis.

Existing home sales jumped 11.8 percent from January 2019 to February 2019 on a seasonally adjusted annualized rate, the largest one-month gain seen since December 2015. Sales rose to 5.51 million on a seasonally adjusted annualized basis (SAAR) according to the National Association of Realtors® (NAR). February sales, however, were off 1.8 percent on a year-over-year…

1031 Exchange Webinar – May 7th at 8 AM PST

Join one of our one-hour 1031 exchange webinars for tax and legal advisors (CPE credit available). These webinars tackle issues such as reverse and improvement exchanges, related party issues and how to avoid common pitfalls. You will receive a summary of current developments regarding possible tax reform and the implications on 1031 exchanges. Webinar Details.

Useful Forms for Tax Preparation

The tax filing date for many taxpayers is just around the corner. The Internal Revenue Service Form 8824, Like-Kind Exchanges, must be completed and filed with the IRS each time a taxpayer performs a 1031 exchange. IRS Form 8824 contains three sections related to a 1031 exchange:

A Leading National IRC §1031 Qualified Intermediary

Asset Preservation, Inc. (API) is committed to providing its exchange customers with unmatched service and the highest level of security available in the 1031 exchange industry. From the customer’s first contact with an API representative, API’s professional exchange counselors, attorneys and accountants work together to meet the customer’s service needs in order to ensure a smooth transaction with no surprises. In the background, API management maintains tight financial controls and multi-layered security systems necessary to provide a level of comfort and the quality of performance relied on by sophisticated investors and Corporate America; we call it “The API Advantage™.”

Important Information for Investors Beginning an Exchange From October 17 – December 31, 2018 Do Not File Your 2018 Income Tax Return Until Your Exchange Has Been Fully Completed. The time frame you have to complete the [...]

It is common for a taxpayer to make repairs, updates, and improvements to enhance a relinquished property in preparation for listing with a real estate agent or broker. A commonly asked question is, “Can I [...]

New Opportunity Zones & Tax Deferral The Tax Cuts and Jobs Act (TCJA) created a new investment vehicle called an Opportunity Zone (OZ) to encourage investment into distressed and low-income communities throughout the United States. [...]